Save Your Tax
Following is 9 simple ways to save your income tax.
1. 80C
Qualifying products: NSC, notified bank deposits and post office time deposits, EPF and PPF, ELSS, life insurance plans, deferred pension plans
Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals and HUF (both resident and non-resident)
2. 80CCC
Qualifying products: Pension plans of life insurers
Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals
How much: Within the overall limit of Section 80C (up to Rs 1 lakh)
3. 80D
Qualifying products: Medical insurance policies taken for self, spouse, dependant parents or children, or any member of HUF
Mandatory requirements: Premium should be paid through a cheque out of income chargeable to tax
Who can avail the deduction: Individuals, HUF
4. 80DD
Qualifying products: Expenses on the medical treatment of a dependent who is a person with a disability
Mandatory requirements: Certification by a medical authority
Who can avail the deduction: Resident individual or HUF
How much: Up to Rs 50,000, or up to Rs 75,000 if the dependant is a person with severe disability
5. 80DDB
Qualifying products: Expenses on the medical treatment of a specified disease (cancer, AIDS, neurological diseases, chronic renal failure and more)
Mandatory requirements: Certificate in Form No. 10-I to be submitted along with the income tax return form. Deduction is available if the amount is actually paid for treatment
Who can avail the deduction: Resident individuals or HUF
How much: Rs 40,000 (if the person treated upon is less than 65 years of age), or Rs 60,000 (if the age of the person treated is 65 years or more)
6. 80E
Qualifying products: Payment of interest on loan taken for higher studies
Mandatory requirements: Deduction is available in the year in which repayment starts and only for eight immediately succeeding assessment years
Who can avail the deduction: Individuals
How much: Deduction available on the total interest portion of education loan, the principal repayment gets no tax advantage
7. 80G
Qualifying products: Donations to certain funds and charitable institutions
Mandatory requirements: Not applicable
Who can avail the deduction: Resident individuals or HUF
8. 80GG
Qualifying products: Rent paid for residential purpose
Mandatory requirements: Should not be getting house rent allowance. Actual rent paid is in excess of 10% of the total income
Who can avail the deduction: Self-employed or salaried
How much: Excess of actual rent paid over 10 per cent of GTI, or 25 per cent of GTI, or Rs 2,000 per month, whichever is the lowest
9. 80U
Qualifying products: Expenses incurred on self, if disabled
Mandatory requirements: Certification by a medical authority to be furnished along with the income tax return form
Who can avail the deduction: Resident individuals
How much: Rs 50,000 for a person with disability, Rs 75,000 for a person with severe disability (disability of over 80 per cent)
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